15% Increase in Bus Fares Across All Karnataka State Transport Corporations

Starting on January 5, commuters in Karnataka will see a 15% increase in bus fares, a move aimed at addressing the financial challenges faced by the state transport corporations.

To cope with escalating operational costs, the Karnataka state government has approved a 15% increase in bus fares for all state-owned transport corporations.

This fare hike will come into effect on January 5, 2025, and will apply to all major public transport services in the state, including the:

• Karnataka State Road Transport Corporation (KSRTC)
• North West Karnataka Road Transport Corporation (NWKRTC)
• Kalyana Karnataka Road Transport Corporation (KKRTC)
• Bengaluru Metropolitan Transport Corporation (BMTC)

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Rising Costs Prompt Fare Revision

The decision was made in line with the rising operational expenses, particularly fuel costs and increasing staff-related expenditures.

Karnataka’s Law and Parliamentary Affairs Minister, HK Patil, justified the fare increase by highlighting the financial strain on transport corporations due to these rising costs.

“The cost of diesel has significantly risen since the last fare revision in 2015, and daily operational expenses have soared. This hike is essential to manage the mounting financial pressure,” Patil said.

Minister Patil provided a detailed breakdown of the current challenges. Diesel prices, for example, have surged from ₹60.90 per liter in 2015 to far higher figures, while daily diesel consumption has jumped from ₹9.16 crore to ₹13.21 crore.

Similarly, staff wages have increased from ₹12.95 crore to ₹18.36 crore daily, further straining the finances of state-owned transport corporations.

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Comparison with Neighboring States

Patil further clarified that despite the 15% bus fare hike, Karnataka’s bus fares will remain more affordable than those of neighboring states like Andhra Pradesh, Telangana, and Maharashtra.

This comparison follows a review of transportation fare policies in these states, where fares have been adjusted upward in recent years to keep pace with inflation and rising operational costs.

“Even with this increase, Karnataka’s bus fares will still be among the lowest in the region,” the minister assured.

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Impact of the 15% Increase in Bus Fares

The 15% increase in bus fare is expected to generate an additional ₹74.85 crore in monthly revenue, providing some relief to the financially struggling transport corporations.

This fare revision marks the first increase for KSRTC, NWKRTC, and KKRTC since 2020, and the first for BMTC since 2014.

Shakti Scheme to Continue Despite Hike

Despite the fare adjustment, the government has assured that the “Shakti” scheme, which offers free travel for women on non-luxury buses, will remain in place.

This promise came despite earlier concerns raised by Deputy Chief Minister DK Shivakumar in October, who mentioned the possibility of reviewing the scheme due to the state’s ongoing fiscal challenges.

#WATCH | Bengaluru: Karnataka Minister HK Patil says, "…The cabinet has decided to make Dharwad a separate corporation. The government has given administrative approval for an increase of 15 per cent in the rates of tickets (for KSRTC buses)…With this increase, there will be… pic.twitter.com/0NINmLcrDH

— ANI (@ANI) January 2, 2025